Making a Copy of a Coupon and Then Redeeming It

question 220

Multiple Choice

Making a copy of a coupon and then redeeming it for cash is an example of:

• A) mass cutting
• B) counterfeiting
• C) misredemption
• D) standard industry practice

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Definitions:

Principal

The original sum of money borrowed in a loan, or the original amount invested, excluding any interest or dividends.

Inflation

The pace at which prices for general goods and services ascend, diminishing the capacity to purchase.

Price Appreciation

refers to an increase in the value of an asset over time, typically evidenced by a higher market price.

Securities

Financial instruments that represent ownership positions in publicly traded corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.